Background:
L*** is a large German retailer with 7,271 stores across Europe, known for its efficient and cost-effective business model, which has led to significant success across the continent. Although we had obtained contact information from L*** at various trade shows, we had never directly worked with them, as previous orders came through foreign intermediaries.
A chance opportunity allowed us to establish contact with their Hong Kong office, providing us with multiple bidding opportunities for various products.
Client’s Challenges:
High Standards for Quality and Social Responsibility: Before placing an order, the client required a strict social responsibility audit of the factory. They placed significant emphasis on quality control throughout the production process, including pre-production sample confirmation, mid-production inspections, and final inspections.
Exclusive Agreement Requirement: To work with the client’s Hong Kong branch, we were required to sign an exclusive agreement, meaning we could not accept orders for the same project from other foreign trade companies.
Stringent Product Testing: The client demanded rigorous physical and chemical testing of products, which had to be conducted at a designated testing institution in Germany and passed before the order could be confirmed.
Price Sensitivity: The client was highly price-sensitive, frequently requesting price reductions and comparing quotes from multiple suppliers, which created pressure and challenges in our pricing strategy.
Complex Order and Inspection Processes: The order process involved managing multiple sample shipments and accommodating several client-arranged inspections.
Our Solutions:
Social Responsibility Audit Preparation: We invited experts to guide us in preparing for the social responsibility audit, ensuring compliance with the client’s requirements.
Quality Control Optimization: We optimized our quality control processes to meet the client’s high standards, including enhancing our inspection procedures.
Acceptance of Exclusive Agreement: After thorough market research, we decided to accept the exclusive agreement terms to secure the partnership.
Resource Investment in Testing Compliance: We allocated significant resources to ensure that our products met the stringent testing requirements.
Close Order Tracking: We closely monitored the execution of the orders, maintaining timely communication and feedback to the client throughout the process.
The Results:
Successful Order Execution: After successfully completing the first order, the client continued to place repeat orders with us annually.
Stable Partnership: By accurately identifying and addressing the client’s needs, and responding quickly to their challenges, we transformed a non-existent business relationship into a stable, long-term partnership.
Conclusion:
This case highlights the importance of understanding client requirements, responding effectively to challenges, and investing in the necessary resources to meet high standards. Through careful planning and execution, we were able to secure and maintain a significant business relationship with one of Europe’s largest retailers.
